UAE entrepreneurs 'stressed out'
Dubai, November 15, 2010
More than 60 per cent of UAE entrepreneurs declared their stress levels had risen markedly during the past two years with late payment being their main concern, according to a new study by Regus.
A leading provider of workplace solutions, Regus said globally 46 per cent of entrepreneurs saw their stress levels rise in the past two years proving that the difficult economic environment had not only left a mark on business attitudes but also on entrepreneur’s personal lives, so closely tied up with their business lives.
In the UAE, 62 per cent respondents said their stress levels peaked mainly due to concerns over late payment followed by reduced bank credit and falling revenues, the study revealed.
Commenting on the results, Mark Dixon, chief executive of Regus, said, “Small businesses provide an important barometer of growth and innovation in any country. Entrepreneurial success is an indicator for innovation and future wealth generation."
"Given its importance, the concerns and obstacles faced by this segment are likely to have significant repercussions on the economy as a whole," he noted.
Aside from overall stress levels the survey also examined the major preoccupation behind that stress. Globally, entrepreneurs related that they are most concerned with falling profits and revenues.
"The second key concern, however, was a lack of cash or working capital to invest in the economic upturn, followed closely by worries over late payment," he added.
"As SMEs exit a period of economic difficulty and prepare to invest in the upturn their concerns reveal that pressures around securing capital to invest are great," said Dixon.
"In addition to this SMEs in the UAE, where banks are reported to generally reject 50-70 per cent of credit applications from small businesses, continue to feel hampered by lack of access to credit,” he added.-TradeArabia News Service